What is the amount of the initial franchise fee for a Crave franchise?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
rs ($____________), payable upon execution of this Agreement ("Development Fee"). The Development Fee is calculated as one hundred percent (100%) of the initial franchise fee for the first Franchised Business to be developed hereunder, plus a deposit equal to fifty percent (50%) of the initial franchise fee for each additional Franchised Business to be developed hereunder.
- 2.2 The Development Fee shall be fully earned by us upon execution of this Agreement, is not refundable, and will not be credited against any other fees you may pay to us pursuant to this Agreement or any Franchise Agreement.
- 2.3 The initial franchise fee payable for each Franchised Business to be developed hereunder shall be as follows:
- 2.3.1 For Restaurant outlets, the initial franchise fee shall be: Forty-Five Thousand Dollars ($45,000) for the first Restaurant, Forty Thousand Dollars ($40,000) for the second and third Restaurants, and Thirty Five Thousand Dollars ($35,000), for the fourth and each additional Restaurant.
- 2.3.2 For each Food Truck outlet, the initial franchise fee shall be Thirty Thousand Dollars ($30,000).
- 2.4 The initial franchise fee for the first Franchised Business has been paid in full in the Development Fee. You shall execute the
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the initial franchise fee varies depending on the type and number of outlets. For a Restaurant outlet, the initial franchise fee is $45,000 for the first restaurant, $40,000 for the second and third restaurants, and $35,000 for the fourth and each additional restaurant. For a Food Truck outlet, the initial franchise fee is $30,000.
Notably, if a franchisee signs a Development Agreement with Crave, the development fee covers the initial franchise fee for the first franchised business. The development fee is calculated as 100% of the initial franchise fee for the first restaurant, plus a deposit equal to 50% of the initial franchise fee for each additional restaurant to be developed. For each additional franchised business developed under a Development Agreement, Crave will apply a credit of 50% of the initial franchise fee toward the initial franchise fee due for such franchised business, with the balance payable in a lump sum upon execution of the Franchise Agreement for that franchised business.
Prospective franchisees should be aware that in certain states, such as South Dakota and Virginia, the payment of the initial franchise fee may be deferred until Crave has completed its pre-opening obligations and the business is open and operating. However, the Franchise Agreement must still be executed before site selection or training begins. This deferral could benefit franchisees by allowing them to delay payment until the franchise is closer to generating revenue. Franchisees should confirm the specific regulations in their state and carefully review the terms of the Franchise Agreement regarding fee payment schedules.